U.S. Fuel Demand Highest for January Since 2008, API Says

Feb. 20 (Bloomberg) -- U.S. fuel consumption increased in
January to the highest level for the month in six years as cold
weather bolstered demand, the American Petroleum Institute said.

Total deliveries of petroleum products, a measure of
demand, rose 3 percent from a year earlier to 19.2 million
barrels a day, the industry-funded group said today. It was the
highest level for January since 2008.

Consumption of distillate fuel, the category that includes
diesel and heating oil, gained 0.5 percent to 4.07 million
barrels a day last month, the report showed. Heating oil demand
surged 12 percent to 553,000 barrels a day in January

“Last month’s cold weather created high demand for propane
and heating oil,” John Felmy, chief economist at the API in
Washington, said in the report. “Domestic crude production
remains strong, and both gasoline and distillate production
reached record highs for the month of January.”

Increased demand for propane helped bolster consumption of
“other oils” such as petroleum feedstock, naphtha and gasoil.
Consumption of those fuels climbed 10 percent to 5.19 million
barrels a day from the previous January.

Fuel Production

Production of both gasoline and distillates reached all-time January highs, the API said, with distillates up 7.2
percent to 4.8 million barrels a day and gasoline gaining 4.5
percent to 9.02 million.

U.S. crude oil output increased 15 percent to 8.09 million
barrels a day in January, the highest level for the month in 26
years. Output of natural gas liquids, a byproduct of gas
drilling, climbed 17 percent to a record 2.75 million.

Total oil and fuel imports dropped 7.9 percent in January
to 9.25 million barrels a day, a 17-year low. Fuel exports
climbed 36 percent from a year earlier to 3.93 million barrels a
day, the highest January level ever and 70,000 short of the all-time high reached in December.